Looking for a loan to make a big purchase? If so, then you should have good credit score. In case your score is poor, then you will have to build it in order to get approval for a loan. If you are having outstanding dues that you need to repay, then you must do so soon. This way, you will be able to improve your score. Thus, the lender may agree to give you the needed loan for your purchase.
4 Steps to build up credit score
With poor score, you will not be able to take out any loan or apply for new credit card. As such, you will have to try to boost your credit score. Read on to know4 steps that will help you to build up credit score.
- You may open bank account – You may open an account or savings account in your name. However, you must be responsible enough to manage your finances efficiently. When you have your bank account, you should deposit money and even take out as and when required. If any of your check bounces, then you may have to face collections. In such a situation, your business might even go in the hands of debt collectors.
- Submit application for secured credit card – You may be submitting application for credit card that is secured in nature. You need to know that secured credit card can help you in credit repair and build good score. You may even open joint account along with a co-signer, however he/she should have good score. When you select any of these options, you will be having a suitable chance for building revolving account record in case you can’t qualify for a new card. You will have to deposit some money against your secured credit card. This amount needs to be equal to the credit limit you’ve got in your card.
- Apply for a gasoline card – You can even apply for a gasoline card. You may qualify for such a card even though you cannot get unsecured credit card. This is due to the fact that the retailers will usually have low criterion for acceptance than the other kinds of credit cards.
- Try to make less purchase every month – You may try to make few purchases every month. However, you need to keep the balance that you owe lesser than 30% of your line of credit. You actually build credit by doing some positive activities on your Equifax, Experian and Transunion credit reports. Thus, if you’ll be having huge debt, then this will drop your score by a great extent in spite of your making timely payments.
It is very important to maintain good credit score these days. While applying for a new job, the recruiter will be evaluating your present score. In case your score is bad, then you may not be able to get the right job despite good qualification. As such, you should go for credit repair and build good score so that you may not have to face such unnecessary problems.